Small Cap Wrap – FRP Advisory, Bezant Resources, Northamber and more…

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12 Feb 2021

@HybridanLLP

 

*A corporate client of Hybridan LLP

 

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What’s cooking in the IPO kitchen?

AMTE Power,  a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7 million by way of a placing of new ordinary shares in the capital of the Company. Timing TBC.

Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, intends to IPO on  the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021.

Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this Spring.   Target valuation £20m raising c. £8m “to finalise the development and launch of a range of the Company’s premium-quality consumer products based on biosynthetic cannabinoids, which is fully compliant under UK law.”

Kanabo Group (RTO by Spinnaker Opportunities SOP.L) on the main market (standard). Raising £6m, enlarged mkt cap £23.4m. Kanabo focuses  on the distribution of Cannabis-derived products for medical patients, and non-THC products for CBD consumers . Due 16 Feb.

NextEnergy Renewables  to launch an IPO on the Main Market. NREN is a differentiated renewables investment company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally.  Targeting a £300m raise.   NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company’s target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021.

Auction Technology Group is considering an IPO on the Main Market.  The Group operates six world-leading online Marketplaces and proprietary global auction platform technology for curated online auctions .  In FY20 the Group delivered pro forma revenue of £52.3 million, supported by notable underlying year-on-year growth from both Standalone ATG Group and Standalone Proxibid Group (12.4 per cent. and 40.4 per cent., respectively). For the same period, the Group delivered a strong profitability performance of £22.3 million pro forma Adjusted EBITDA representing a pro forma Adjusted EBITDA margin of 42.6 per cent. Expected March 2021.

Digital 9 Infrastructure launch an initial public offering  on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be  published in March 2021.

Cordiant Digital Infrastructure  to admit its shares on the Specialist Fund Segment of the Main Market of the London Stock Exchange . Targeting a £300m raise. Cordiant invests in global infrastructure and real assets, running infrastructure private equity and infrastructure private credit strategies through limited partnership funds and managed accounts. Due 16 Feb.

4basebio UK Societas   is a specialist life sciences group focused on therapeutic DNA for gene therapies and DNA vaccines and providing solutions for effective and safe delivery of these DNA based products to patients.  The Company has been divested from 4basebio AG , a German company listed on the Prime Standard segment of the Frankfurt Stock Exchange . No capital to be raised on Admission. Anticipated market capitalisation on AIM Admission: £14.53m. Due 17 Feb

Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5m by way of private placement of new Common Shares to advance the United Downs copper-tin project. The Company expects that Admission will become effective 16 February 2021.  The Company’s Common Shares will continue to be listed and trade on the TSX-V in Canada. Raising £8.2m. £18.7m mkt cap.

 

Banquet Buffet

FRP Advisory 105.5p  £252.7m (LON:FRP)

The UK professional services firm specialising in advisory services, today announces a trading update for the nine months to 31 January 2021. The Board is pleased with the continued progress made over the first nine months of the Group’s financial year, despite the significant levels of government support and reduced levels of both corporate insolvency and administration appointments across the market. As such, at current trading levels, the Board now expects to exceed current market expectations1, with revenues of at least £75 million and adjusted EBITDA of at least £21 million.

As stated at the Interim results in December, the Board is pleased to be moving to a quarterly dividend payment schedule and is today declaring a quarterly dividend of 0.8p per eligible share.

 

Bezant Resources 0.255p  £9m (LON:BZT)

The copper-gold exploration and development company, announced i) further to its announcement on 22 December 2020 the completion of it acquisition of 100% of Metrock Resources Ltd and its manganese mineral exploration licences in Southern Botswana comprising the Kanye Manganese Project and ii) further to its announcement on 19 June 2020 that EPL 7170 which was under application when Bezant acquired Virgo Resources Ltd  has been granted and is now registered in the name of the group’s 80% owned subsidiary Hope Namibia Mineral Exploration Pty Ltd Incorporated in Namibia which also owns EPL 6605. The group also owns EPL 5796 through its 70% owned subsidiary Hope and Gorob Mining Pty Ltd incorporated in Namibia.

 

Northamber 64.5p  £17.56m (LON:NAR)

HY Dec 20 results from the  longest established trade-only distributor of IT equipment in the UK. Revenues increased 13% in the first half from £26.3 million to £29.6 million for the comparative period last year. More significantly, this revenue growth was combined with a significant increase in Gross Margin from 8.8% to 12.8%; the cumulative effect of both was to increase Gross Profit by £1.5m from £2.3 million to £3.8 million, an increase of 65%.  Operating profit of £223k was down due to a £10m gain on property disposal recorded in the comparative period.

“In keeping with the outlook we shared in our recently published full year results, we remain cautiously optimistic that the investments we have made in supporting our partners coupled with removing the one off costs tied to moving warehouse should be reflected in the trading results for the current financial year and allow us to build on our profitable first half. We necessarily remain cautious due to the economic uncertainty, Brexit and the potential further impact of COVID on demand and the supply chain, but feel strongly that our continued focus on strategic higher margin value categories provides a solid road map for the future with profitable growth opportunities and the ability to unlock long term value for shareholders.” 

 

Fast Forward Innovations 10.15p  £18.8m (LON:FFWD)

The Company focusing on making investments in fast growing and industry leading businesses, is has invested A$1 million (£560,000) in a placing undertaken by Little Green Pharma (ASX: LGP and ‘LGP’), an ASX-Listed, vertically integrated, medicinal cannabis business with operations from cultivation and production through to manufacturing and distribution. The LGP placing raised a total of A$22m at a price of $0.65c; accordingly, FFWD expects to hold 0.9% of the Company following issue of the placing shares.  

As announced by LGP on 29 January 2021, LGP achieved record quarterly results for the December 2020 quarter with s ales revenue up 90% on the previous quarter to A$2.45 million (unaudited)

 

Serabi Gold 92.5p  £54.7m (LON:SRB)

The Brazilian-focused gold mining and development company announced further positive results from its ongoing regional exploration activity at its Calico target, which is located just 5km from the Palito Operation and Processing plant.  In addition, initial regional soil geochemistry on the Sao Chico/Sao Domingos trend has recorded multiple significant gold and multi-element anomalies within this highly prospective mineralised corridor.

· Identification of significant geochemical gold-in-soil anomalies at Calico, Juca and Forquilha, of which Calico is now very significant over a two kilometre by two kilometre area.  Values as high as 0.8g/t gold have been recorded, better than have been seen in any soils over the Palito orebody.

· Subsequent terrestrial geophysics survey using Induced Polarisation (“IP”) covering the Calico soil anomaly has identified multiple chargeability anomalies. 

· Both results are very comparable in terms of scale and signature to the Palito orebody, a 600,000 ounce resource, being mined today.

· First pass drill-testing of the Calico prospect is planned in the coming months.

· Multi-element soil anomalies confirm strike extension of known gold occurrences at the Fofoca prospect on the Sao Chico/ Sao Domingos trend. 

 

Goldstone Resources  12.2p  £34.6m (LON:GRL)

The gold exploration and development company focused on bringing its Akrokeri-Homase Gold Project (AKHM) into production, announced that the Ghanaian Environmental Protection Agency (EPA) has granted the environmental permit for the Company’s Homase South Pit within the AKHM Project. The Environmental Permit is a key permit required to allow the Company to proceed towards construction of the Project. This is a major achievement in the development of the AKHM Project, which will be the Company’s  first mine in its highly prospective 83.24km2 total licence area. 

 

Red Rock Resources 1.125p  £10.94m (LON:RRR)

£1m placing at 1.05p. Andrew Bell, Chairman, comments : “A combination of license grants in Australia, re-grants in Kenya, and exploration progress in Congo, mean that Red Rock is now planning three promising drill programmes.

This is an exciting prospect, to which is added the opportunity of advancing a listing of its Australian JV.

Most immediately, the imminent release of an updated JORC Mineral Resource Estimate for Kenya is expected, which will be followed immediately by putting out a drill programme to tender.

This financing will enable us to move forward more rapidly with these drill programmes, the cost of which over 2021 is already estimated to exceed $800,000″

 

Jet2 1198p  £2140m (LON:JET2)

The Leisure Travel group, is pleased to announce the successful completion of the Fundraise announced yesterday. £422m at 1180p. The Company consulted with a number of its major shareholders prior to the Fundraise in order to adhere to the principles of pre-emption as far as possible through the allocation process and is pleased by the strong support it has received from existing shareholders and new investors.

“The Board is grateful to both existing shareholders and new investors for their significant support of this equity issue. Based on the indicative scenario planning undertaken by management, the Board believes that the proceeds will provide sufficient liquidity on an extended and likely unpredictable shutdown basis to deal with this continually challenging trading environment.  Furthermore, the Directors believe the Fundraise will enable management to continue to adopt a decisive, but prudent, responsible financial management approach; take longer-term strategic decisions to support sustainable long term profit growth; and improve the ability for Jet2 to exit the pandemic in a stable commercial position so that it is well positioned to capitalise on the upturn opportunity when it arrives. The Board remains of the belief that once able to do so, our Customers will be determined to enjoy the wonderful experience of a well-deserved Jet2 holiday and that Jet2.com and Jet2holidays will continue to have a thriving future, taking millions of UK holidaymakers annually to the Mediterranean, the Canary Islands and to European Leisure Cities.”

 

Faron Pharma 387.5p  £181.7m (LON:FARN)

The clinical stage biopharmaceutical company, announces today that the Bookbuild, announced on 11 February 2021, is now closed. The Company raised aggregate gross proceeds of EUR 15 million in the Placing  at an Issue Price of EUR4.26.  The European Investment Council Fund, EIC, which had given a pre-commitment, was the largest of the new investors. Faron is the first publicly listed company that the EIC Fund has invested in.

Commenting on the successful Placing, Dr Markku Jalkanen, Chief Executive Officer of Faron, said: “We are delighted to have received this significant support from our existing and new investors in this successful financial round. In particular we would like to welcome the European Innovation Council Fund, a breakthrough initiative from the European Commission. With these additional resources we can further accelerate our pipeline projects, especially in the fight against cancer with our Clever-1 targeting precision immunotherapy, bexmarilimab. The recent discovery of free, soluble Clever-1 as an immune suppressive agent capable of directly restricting T-cell activation in all locations of the body may help us to control cancer-induced immune suppression in remote locations such as distant organs. Cancer clinicians have, for years, sought the ability to measure and control immune suppressive elements in their patients. Soluble Clever-1 is a prime candidate for this, with bexmarilimab offering significant potential as a breakthrough therapy.”  

 

Infrastrata 39.25p  £31.97m (LON:INFA)

The UK quoted company focused on strategic infrastructure projects and physical asset lifecycle management ,  announces that it has acquired substantially all of the assets of Burntisland Fabrication Limited, providing the Company with increased capacity across two sites in prime locations in Scotland. The consideration paid for the assets is £650,000 in cash with a further deferred consideration of up to £200,000 in cash, subject to achievement of future revenues targets.  These facilities will trade under the Harland & Wolff brand and represent the final fabrication piece of its UK footprint, positioning the Company to fully deliver on its existing strategy quicker than it would have done with only its two existing sites: Harland & Wolff (Belfast) and Harland & Wolff (Appledore).

 

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

 

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